With Bouygues taking a stake in ALSTOM, ALSTOM IS PLANNING
BROAD COOPERATION WITH BOUYGUES

At the commercial level, the two companies are planning
cooperation of their sales networks to maximise their strengths
on the markets and develop together integrated projects as
opportunities arise. Bouygues and ALSTOM can provide a joint
response to market demands by offering solutions that combine
Bouygues civil engineering with ALSTOMs
equipment. It has been agreed that the cooperation between
Bouygues and ALSTOM should not be  exclusive: in the
interest of their customers, the two companies will continue to
work with the most suitable partners and suppliers for each
project.

Exchanges at the operational level would involve the
improvement of project execution by sharing best practices in
organisation and project management, setting up joint training
programmes for project directors and optimising costs on common
projects.

Bouygues also intends to take a 50% equity share in ALSTOM's
hydro power equipment business; the corresponding terms are
under discussion. This operation would allow ALSTOM to fulfill
the commitment made to the European Commission to set up a
joint venture in this sector. ALSTOM is the world's number one
hydro power equipment supplier and service provider.

The necessary procedures have been or will be implemented to
inform and/or consult the various bodies representing ALSTOM
personnel about the project.

(1) Under the agreement with the European Commission, the
State is required to withdraw from ALSTOM' s equity by 2008 at
latest.

ALSTOM had previously confirmed to the French State and
Bouygues that the results for fiscal year 2005/2006 which will
be published on 17 May would be in line with the objectives
set, i.e. increase in orders of more than 5% on a comparable
basis, increase in sales of more than 7% on a comparable basis,
an operating margin of more than 5%, positive free cash flow
and net income, after taking into account the disposal of the
Marine activity, of more than 150 million. ALSTOM also
confirmed its objective of achieving an operating margin
between 6% and 7% in March 2008 and indicated it should exceed
these levels in March 2009.

Patrick Kron, Chairman and CEO of ALSTOM, stressed that
"Bouygues investment in ALSTOM fully meets my objective
of associating a reference shareholder with a long term view,
which will contribute to the stability of our capital
structure. Bouygues is a great company that shares our
conviction that our energy and transport markets have a very
bright outlook for the future and considers ALSTOM as ideally
positioned to fully benefit from this growth. The envisaged
cooperation with Bouygues will strongly support our strategy
focused on improvement of performance and profitable
growth."  

Press information:

Patrick Bessy

(33) (0) 1 41 49 3762

patrick.
bessy@chq.alstom.com
 

Investor Relations:

Emmanuelle Châtelain

(33) (0) 1 41 49 3738

investor.relations@chq.alstom.com